Pitching strongly for supportive measures to the MSME sector, Industries and IT Minister K.T. Rama Rao urged the Central government to announce moratorium on the loans availed by MSMEs till the end of the current financial year without any accrual of interest during the moratorium period.
The support would provide big relief to MSMEs and could help them get back to normalcy. The Minister addressed a letter to Union Finance Minister Nirmala Sitharaman, requesting the Centre to support the MSME sector established in the State.
While the incidence of COVID-19 was declining sharply and there were chances of modest economic recovery towards the end of the fourth quarter, the MSME sector still needed support. Looking at the seriousness of loss of business and declining revenues of the MSMEs, it would be justified if the loans availed by them were given moratorium till March 31, 2022.
Mr. Rama Rao said Hyderabad and the surrounding districts had been major hubs of manufacturing for the past five decades with a predominance of MSME industries. The sector, however, had been badly affected by pandemic-induced restrictions and interruptions in the last one year.
Though the State government had not put any restrictions on industrial activities during the recent second wave of the pandemic, restrictions in the surrounding States had a major impact on the functioning of industries in Telangana. Many units in the MSME sector had faced challenges in procurement of raw materials and sending out finished products to their customers.
Another major reason for the slowdown in the activities was shortage of labour that typically came to Telangana from other States. In view of this, the Centre should take up supportive measures in favour of the MSMEs.
